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Borrower sad Lollar oowoant sad agree as fellows:
i. Payssat of Principal arW Interest. Borrower shall pr+ompt~ Pay what dw the priadpal os and interest on the indebtedness ~
evideoosd by the Nos. prepayment sad lea td,asgs a. provided is tM Note, sad the principal oiand interedoa any Flrtnre Advaacss secured ?
bey this I~[arfgage,
9. Fss~ds for Taxes sad Iasaranos. Snbjed to applicable law or to a written waiver by Lender. Borrower shall pay to Lender oa We day
moathiy inetatlmaaa of principal sad iater+set are pt~yable under the Note, until the Note is paid in full, a sum (babin "Fnads'ti equal to oats
twallth of tM yearlyy taws and asssesma?a which may attain priority over this Mortgage. sad ground rasa on the Property. if any, plw oae•
twelitL of yearly praaium iwwlmeaa for hazard ituuranoe, pins oaetwelNr of yearly preaaum inatalUneaa for mortgage insurance. if any. ~
all as reasonably estimated initially and lktn time to time by Lender oa the basis of weasmana and Mlle and reasonable sstimatea thereof. i
The Funds shall be held is an iasfitution the depose or accounts of which ors insured or guaranteed by a Federal or $tats agarry s
(indnding Larder ff Lender is sudr an inatitnti~). Leader ahaA apply the Funds to pay said taxes, assessments. insnrence premiums and
ttroond recta. Leader may not charge tae so holding and applying the Funds, analysing said account, or verifying and compiling said
assasmena sad biib, anises Lendbr pays Borrower interest on the Funds sad applicable law patrols Lender to makaauch a charge. Borrower
and Lwdar may agree in writing at the time of execution of this Mortgage that inarest on the Fonda shall be paid to Borrower, sad unless
such agreement is made a applicable law requires such interest to be paid, Larder shall sot be required to pay Borrower say interest ~
carriage oa the Fbrrds. Lender shall give to Borrower. without charge, an annual aooounting of the Fwrds showing cradle and debits to the
Funds and the purpose for which each debit to the Funds was made. The Funds era pledged as additional sxnrity for thesums secured by this
Mortgage
If the amount of the Funds held by together with We future monthly installments of Fonda payable prior to the dnedatea of axes,
assessments. insurance premiums and ground read. shall exceed the amount required b pay said axes, assessments, insurances premiums
and ground tens as they fall due. andt ezcess shall be. at Borrower's option. either promptly repaid to Borrower or credited to Borrower on "
monthly insaumara at Funds. If the amount of the Fusels held by leader shall not be sufficient to pay razes. assessments. iruuranoe !
premiums and ground recta w they tall due. Borrower shall pay to Lender any amount neoeesary to make up the deficiency within 30 days
from the dots notice is mailed by Larder to Borrower requesting payment Wereof.
Upon paymart in tall of all sums secured by Chia Mortgage. Lender shall promptly refund to Borrower any funds held by Leader. If under
paragraph 18 hereof the Property le sold or the Property is otherwise acquired by Lender. Lender shall apply, no later Wan immediately prior f
to the sale of the Property or is soquidtion by la?der, aqy Phnds held by Lender at the time of applications as a credit against We ewes secured ~
by this Mortgage.
3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under We Note and
paragraphs 1 and 2 hereof shall be applied by Leader first in payment of amounts payable to Lender by Borrows under paragraph 2 hereof,
then to interest payable on We Noa, Wen to We principal of We Note, and Wen to interest sad principal on any Futnn Advances.
4. Charges; Liens. Borrower shall pay all area, assessments and othercharges, fines and impositions attribuable to the Property which
may attain a priority over Wia Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or,
if not paid in such manner, by Borrower making payment, when due. directly to the payee thereof. Borrower shall promptly furnish to Lender
all notices of amounts. due under his paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to
Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over Win Mortgage; provided, Wet
Borrower shall not be required b discharge any such lien ao long as Borrower shall agree in writing to the payment of the obligation secured by
e;:.h lies is a manner acceptable to Lender, or ah al l in grn?d faith contest such lien by, or defend enforcement of such lien in, legal proceedings
which operate to prevent We enforcement of the lien or forfeiture of the Property or any part thereof.
5. Hazard Insurance. Borrower shall keep the improvements now existing or hereaRer erected on the Property insured against loss by
fire, hazards included within the term "extended coverage." and such other hazards as Lender may require and in such amounts and for such
periods as Lender may require; provided, Wat Lender shall not require that We amount of such coverage exceed Wat amount of coverage
required to pay We soma secured by this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approval
• " - ' ~ - - _Lt_..„:~LL..1J . n ;,,,,,,.q,,,.,, e.nt;.•ioa Qti„it ~ „A;~ Sn the manner orovided under nara¢raph 2 hereof or, if
tl~uu~UVautunacaev..ovy.................,p... -
not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier.
AU insurance policies and renewals W ereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of
and in form acceptable to Lender. Lender shall have the right to hold the policies and renewal; thereof, and Borrower shall promptly furnish to
render all renewal notices and all receipts of paid premiums. In the event of lose, Borrower shall give prompt notice to We insurance carrier
and lender. Landes may make proof of loss if not made promptly by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property
damaged, provided such restoration or repair is economically [easible and the security of Wis Mortgage is not Wereby impaired. If such
restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall beapplied
to the sums sernred by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to
respond to Lender wiWin 30 days from We date notice is mailed by Lender to Borrower that the insurance carrier offers to nettle a claim for
insurance benefits. Lender is auWorized to collect and apply the insurance proceeds at Lender'eoption either to restoration or repair of the
Property or the sums secured by Win Mortgage.
Unless Lender and Borrower oWerwise agree in writing, any arch application of proceeds to principal shall note:tend or postpone the due
date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18
hereof We Property is sognired by Lender. all right, title and interest of Borrower in and to any insurance poticiea and in and to the proceeds
Wereof reanlting from damage b Property prior to We sale or acquisition ahal! pass to Lender to We extent of the soma secured by this
Mortgage immediately prior to such sale or acquisition.
6. Preservation and Heintenance of Property; Leaseholds; Condomiaums; Planned Uait Developments. Borrower shall keep
the Property is good repair and shall not commit wAt?Ge or permit impairment or deterioration of the Property and shall comply wild We
provisions of any lease if Wis Mortgage is on a leasehold. If Wis Mortgage is on a unit in a condominium or s planned unit development,
Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing We condominium or planned
unit development, We by-laws and regulations of We condominium or planned unit development, and eonstitnent documents. If a
condominium or planned unit development rider is executed by Borrower and recorded together wild this Mortgage, the covenants and
agreements of such rider shall be inrnrporated into and shall amend and supplement the rnvenants and agreements of this Mortgage as if the
rider were a part hereof.
7. Protection of Lender's Security. If Borrower fai4 to perform We covenants and agreements contained in this Mortgage, or if any
action or proceeding is oommenoed which materially affects Lender's interest in the Property. including. but no! limited to, eminent domain.
insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, Wen Lender at Lersder's option,npon
notice to Borrower may make such appearances, disburse such awns and take such action as is neoasary b prated Calder's interest,
including, but not Waited to. disbursement of reasonable attorney's fees and entry upon We Property to make repair. it Lender required
mortgage insurance as a condition of making We loan secured by Wiz Mortgage, Borrower shall pay the premiums required to maintain
such insurance in effect until such trine as We requirement !or such irssarance terminate in accordance wild Borrower's and Lender's
written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in We manner provided under
paragraph 2 hereof.
Any amours disbursed by Lender persuant to this paragraph 7, with interest Wereon, shall become additional indebtedness of
Borrows secured by this Mortgage. Unless Borrower and Lender agree to older terms of payment. such amounts shall be payable npoa
notice from Lender to Harrower requesting payment Wereof, and shall bear interest from the date of disbursement at the rate payable tr+oas
time to time on outstanding principal ender the Note unless payment of interest at ouch rate would be contrary to applicable law, in whids
event such amounts shall bear interest at the highest rate perrniasible under applicable law. Nothing contained in thin paragraph shall
n~quire Lender to incur any expense or take any action hereunder.
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